Exemptions for MTD for VAT

Are there exemptions for MTD for VAT?

There are very few exemptions for MTD for VAT. If you think any of the following exemptions apply to your business, HMRC advise you to contact the VAT Helpline on 0300 200 3700.

You will not have to follow the Making Tax Digital rules where HMRC is satisfied your business meets the exemption criteria.

Religious societies

The business is run entirely by practicing members of a religious society whose beliefs are incompatible with the requirements of MTD for VAT. This could be where their beliefs prevent them from using computers.

Not practical

An exemption may apply where it’s not reasonably practical to use digital tools to keep business records or to submit returns for reasons of age, disability, remoteness of location or for any other reason.


If an insolvency procedure is in place, an exemption from MTD for VAT may be granted.

If exemption is not appropriate…

If you think any of these apply to you then contact the VAT Helpline to discuss alternative arrangements. If HMRC consider that an exemption is not appropriate, digital assistance may be available to help you get online support.